Color-Coded KPI Monitoring

Noah Kagan shares his system for monitoring business health through weekly KPI tracking to reduce anxiety and maintain control over a growing company.

Core KPI Monitoring System

• Uses a Monday KPI sheet updated weekly
• Tracks key metrics:
  • Gross margin
  • Customer metrics
  • Color-coded indicators for quick assessment
• Primary purpose is identifying red flags that need attention

Financial Management Approach

• Focuses on profitable spending areas:
  • Marketing
  • Development
  • Sales
  • Partner success team
• Distinguishes between types of expenses:
  • High-profit investments get unlimited budget
  • Scalable costs (like AWS) require more careful monitoring
  • Maintains 30% profit target for spending decisions

Risk Management

• Creates checks and balances to avoid weekly stress
• Monitors net income closely
• Careful with budget projections
  • Warns against spending based on projected revenue
  • Notes danger of missing revenue targets after committing to expenses

Growth Philosophy

• Focuses on immediate customer needs over long-term planning
• Maintains core mission: "promote dope tools at great prices"
• Started with modest goals ($3,000/month)
  • $1,000 for living
  • $1,000 for eating
  • $1,000 for saving
• Emphasizes current customer service over long-term planning